Legal protection is a crucial factor in enhancing the business environment, as a strong rule-of-law framework is essential for the healthy functioning of a market economy. Robust legal protection helps market entities thrive. A sound legal environment ensures that businesses prosper, just like plants thriving in ample sunlight, said Wu Xiaoyan, director-general of the Center for the Promotion of Doing Business Environment at the National Development and Reform Commission, in People's Daily's recent video series "Stories of High-Quality Development."
According to Wu, China has made steady progress in improving the legal framework for its business environment. The implementation of the Regulation on Optimizing the Business Environment has laid a solid institutional foundation for further enhancements. A batch of civil and commercial laws concerning systems underpinning the market economy, including the Foreign Investment Law, have been enacted or revised, providing legal safeguards to ensure equal protection for all market entities.
A law-based approach to administration is upheld throughout the enforcement process. All regions and government departments have implemented two critical systems: the legal review of major enforcement decisions and the establishment of administrative discretion benchmarks. Additionally, they have adopted various measures to create a business environment that is "proactive when necessary and non-intrusive when not. "
Judicial fairness has played a vital role in safeguarding market entities, with enhanced judicial transparency contributing to improved trial quality and efficiency. Differentiated case management has allowed more than 80 percent of civil disputes in local courts across China to be resolved through mediation, expedited rulings or fast-track procedures, significantly reducing case resolution times.
Intellectual property (IP) protection has also become more effective, with the country's IP protection and public service systems undergoing rapid upgrades to drive innovation. By the end of 2024, China had registered 4.76 million valid invention patents, becoming the first country in the world to surpass the 4 million mark.
China has strengthened its ability to ensure the rule of law in foreign-related matters. The country has established one-stop international commercial dispute resolution centers and expanded its global legal service network. In addition, Chinese law firms have accelerated their overseas expansion, now operating in 35 countries and regions.
"The rule of law serves as a crucial pillar of a country's governance system and capacity, playing a fundamental, stabilizing, and long-term enabling role. It is the cornerstone of an optimal business environment," Wu stated.
